Top U.S. Stories

  • Reports revealed President Trump used an elaborate ruse — including being moved through a catering truck — to switch from Air Force One to a smaller Air Force C-32A jet before leaving Turkey following the NATO summit in Ankara, citing an Iranian assassination threat. Why it matters: it underscores how seriously U.S. security officials are treating the standoff with Iran, even as diplomatic channels over the Strait of Hormuz remain open. (AP, The Hill)
  • The U.S. Bureau of Labor Statistics released July CPI on August 12: headline inflation +3.4% year-over-year, core CPI +2.5% y/y and +0.2% month-over-month, both in line with forecasts and slightly cooler than June. Why it matters: the in-line print eased fears of an imminent Fed rate hike and lifted equities. (BLS)
  • Iran and Oman are reportedly close to a deal on managing traffic through the Strait of Hormuz, but Iran is demanding U.S. compensation for what it calls a violation of a prior memorandum, while Trump is separately demanding compensation from Iran — leaving the strait’s full reopening unresolved. (CNN)
  • Turkey’s parliament passed a law granting effective amnesty to former fighters of the Kurdistan Workers’ Party (PKK), advancing the peace process after the group declared an end to its decades-long armed struggle in May 2025. Why it matters: it marks a concrete legislative step toward ending one of the region’s longest-running insurgencies. (Nikkei)
  • North Korea fired a ballistic missile eastward on August 12 that flew roughly 690 km and reached an altitude of about 90 km before falling into the Sea of Japan, outside Japan’s exclusive economic zone. (Nikkei)

Markets

The in-line July CPI reading pushed U.S. rate-hike expectations lower and supported Treasuries. The S&P 500 gained 0.3% to 7,748.50, while the Nasdaq rose 0.5% to 26,588.49 (AP). The dollar weakened against the yen after the release, with USD/JPY slipping toward the 158 level in early New York trading from around 159 earlier in the day, though the wide Japan-U.S. rate gap (BOJ 1.00% vs. Fed 3.50-3.75%) continues to cap any lasting yen strength (Minkabu FX). WTI crude eased to $82.74/barrel (-0.63%) after recent gains tied to Middle East tensions (Jiji Press Equity). In Tokyo, the Nikkei 225 rose 553.84 points to close at 67,524.06 on August 12, led by semiconductor names such as Advantest and Tokyo Electron (FISCO). The Bank of Japan held its policy rate at 1.00% at its July 30-31 meeting, signaling it is assessing the impact of June’s hike while flagging inflation likely to clearly exceed 2% later this fiscal year (BOJ).

Stocks in Focus

Japanese semiconductor names (Advantest, Tokyo Electron, Kioxia) led Tokyo’s gains on AI-related demand. Energy-linked stocks are drawing attention globally as Middle East tensions keep oil prices elevated. This is informational only — not a recommendation to buy or sell any security.

Compass Insight

A CPI report that simply meets expectations shouldn’t be market-moving news — yet stocks rallied in relief, a sign of just how jumpy this market has become around inflation surprises. The dollar-yen pair remains caught in a tug-of-war between a still-wide Japan-U.S. rate gap and periodic bouts of dollar softness on cooling U.S. data; expect continued volatility in the 158-160 range rather than a clean break either way. For households, a weaker yen keeps import costs, energy bills, and travel expenses elevated, while brief yen-strength windows can be worth watching for import or travel purchases. Near term, watch Fed commentary and any follow-through in the Hormuz negotiations for oil-price risk; further out, the timing of the BOJ’s next hike will matter more for mortgage borrowers on variable rates than any single data point this week.

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Auto-generated and AI-written. Not investment advice.